Calm Before The Storm
By Tue, Apr 14, 2020
Hey Scoopers,
The stock market indices didn’t agree on the market’s direction on Monday. And, the vibe in the market feels like the calm before the storm. – more on that in the “Overall Market” section.
Beyond the overall market, amidst a high volume of short interest, shares of a car manufacturer moved upward, and one online retailer had to put a hold on its an acquisition agreement due to the COVID-19 situation. – more on that in the “What’s Up?” and “What’s Down?” sections.
Oh, by the way, we are curious to know what you have done during the COVID-19 crash. — more on that in the “Water Cooler” section.
But, first, here is a recap of what happened in the market yesterday:
Market Recap
- U.S. markets: The Nasdaq ended the day in the green, while the other two indices fell by at least 1%. Scroll down to the “Overall Market” section to read more.
- Cryptocurrency: Bitcoin’s price had a rough start of the week and dropped to $6,800 per coin.
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The Calm Before The Storm.
Monday finished with a mixed bag of results in the stock market. The Financial Services and Industrial sectors were down more than 3%, while the technology sector ended the day slightly higher than where it started it. The stock’s futures market remained relatively flat to start and then moved into the green in the evening trading session. Investors are getting ready for an action-packed, news-frenzy earnings reports season that is about to get roaring in a few days in the United States. It feels like the calm before the storm.
Woza, The Short Interest…
So, what happened?
Shares of Tesla (Ticker: TSLA) were surprisingly up more than 16% on Monday. The upward movement is most likely related to nearly 11% short interest in the company’s stock price in anticipation of the quarterly earnings report on April 24th.
(Source: To see the short interest figures, go to Tesla’s Stock Card and click on “Sentiment.”)
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So, what happened?
Shares of 1-800 Flowers (Ticker: FLWS) fell more than 12% on Monday. It’s strange to see the price drop because social distancing gives online gift basket deliveries a boost. Analysts from D.A Davidson downgraded the stock to neutral because they are worried about the overall consumer confidence and the ability to pay not-so-necessities such as flower arrangements. Also, the company was supposed to acquire Bed, Bath & Beyond’s (Ticker: BBBY) PMall.com for more than $500 million. However, since the COVID-19 market crash, it has requested BBY to give the company a bit more time. Investors are concluding that 1-800 Flowers is in short of resources, and may not be able to honour its acquisition agreement. That’s enough reason to send the stock into a selling spiral.
What Have You Done?
So what happened here?
Scoopers, we are running a quick 2-question survey to get a sense of how you all are doing in this COVID-19 market.
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About the Author
The authors of this Scoop are the editorial team at Stock Card, led by Hoda Mehr. Hoda Mehr is CEO and Co-founder of Stock Card and the host of Renegade Investors podcast. She runs a community of 40,000 stock market investors and manages Stock Card's successful flagship portfolio, Roll with Our CEO, on Stock Card Portfolio Store. Hoda is an Economist with an MBA from Concordia, John Molson School of Business. She applies behavioral economics, data journalism, and storytelling to all aspects of her work. Before starting Stock Card, Hoda worked as a strategy and insights lead at technology companies including Symantec, Aimia and Sony. Create a free account to do your stock market research easily and mistake-free: Stock Card Stock Card
